ALBAWABA – Stocks fell on Tuesday as investors dealt with uncertainty over China’s tepid economic recovery as oil prices continue to fluctuate above the $70 barrier.
WTI for August delivery fell to around $71 per barrel at 9:33 GMT +3, according to Bloomberg. Whereas Brent crude lost 0.7 percent on last week’s gains in the opening session.
Over the span of one month, Brent crude gained 1.71 percent, between May 22 and June 20, as reported by Google Finance.
Brent crude is currently selling at $75.83 per barrel.
Meanwhile, European equity futures ticked lower and US contracts declined after Wall Street was shut for a holiday Monday. In Asia, Hong Kong shares led the declines, with the Hang Seng China Enterprises Index falling more than 2 percent.
Markets are hoping for further stimulus from China, in order to stimulate domestic consumption and charge the real estate sector. Such stimulus would help reinvigorate a slowing economy, experts have told news agencies, including Bloomberg, Reuters, and Agence France-Press (AFP).
However, the economic authorities in China have only enacted two interest rate cuts recently, leaving investors and markets alike wanting more.
Alibaba Group Holding Ltd. traded about 1.5 percent lower Tuesday following the surprise replacement of its CEO and chairman.
The yen weakened to 142 against the United States (US) dollar as Japan’s loose monetary policy weighed on the currency. The yuan depreciated slightly, taking declines to a third day, Bloomberg reported.
Monthly lending rates, for banks to borrow from each other, have reached the highest levels since 2007 in Japan. Prolonged currency intervention shrank the city’s liquidity pool and rose demand for cash climbed, the New York-based news agency explained.
US Treasury yields rose after the break from trading Monday, and gold inched lower.
Markets summary by Bloomberg
Stocks
S&P 500 futures fell 0.3 percent as of 7:01 a.m. London time
Nasdaq 100 futures fell 0.3 percent
Japan’s Topix fell 0.3 percent
Australia’s S&P/ASX 200 rose 0.9 percent
Hong Kong’s Hang Seng fell 1.7 percent
The Shanghai Composite fell 0.2 percent
Euro Stoxx 50 futures fell 0.1 percent
Currencies
The Bloomberg Dollar Spot Index was little changed
The euro was little changed at $1.0924
The Japanese yen was little changed at 142.05 per dollar
The offshore yuan fell 0.2 percent to 7.1808 per dollar
The Australian dollar fell 0.7 percent to $0.6800
The British pound was little changed at $1.2781
Cryptocurrencies
Bitcoin rose 0.4 percent to $26,823.53
Ether fell 0.1 percent to $1,728.44
Bonds
The yield on 10-year Treasuries advanced three basis points to 3.79 percent
Japan’s 10-year yield was unchanged at 0.385 percent
Australia’s 10-year yield advanced five basis points to 4.02 percent
